By Kim Yoo-chul
Staff Reporter
A special counsel investigating Samsung Group's alleged irregularities will summon the group chairman's son Thursday, a source from the counsel's office said Wednesday.
The summons will be part of the investigation into the alleged wealth transfer from group Chairman Lee Kun-hee to his only son Jae-yong, the source said.
The team requested Lee to come to their office in the morning and Lee expressed his willingness to do so.
Meanwhile, Samsung Electronics is facing an uphill battle to maintain its dominant position in the global electronics industry amid mounting concern about its faltering partnerships with foreign businesses.
What is most alarming is that the South Korean electronics giant has few, if any, tools to calm investors’ uneasy sentiment as the latest corruption scandal widens.
``We are scratching our heads over how to maintain strategic partnerships with Samsung in the wake of the scandal. The concern was magnified after Japan’s Sony hinted at cutting its partnership with Samsung for the development of next-generation displays,’’ a Dubai-based large retailer said in an e-mail interview with The Korea Times Wednesday.
A Samsung executive partly admitted the existence of uneasiness among foreign partners. ``Currently, we have no problems with our overseas clients but it is true that we are receiving more calls than before,’’ he said.
In an undeniable move to regain its past glory in the global flat-screen market, Sony, the world’s No. 2, manufacturer and Sharp, the No. 3, struck a deal Tuesday to jointly build a factory to produce large liquid crystal displays (LCD) by riding on greater consumers' appetite for profitable high-definition models.
According to market research firm DisplaySearch, global LCD TV sales will increase 47 percent to about $96 billion in 2011 from $65.2 billion last year.
``When the new plant, which uses the so-called 10th-generation glass substrates, starts to produce panels of over 50 inches in March 2010, Japanese companies will be armed with strong price competitiveness, which would truly be a risk for Samsung,’’ another Samsung executive said, asking not to be named.
In another pre-emptive move to surge ahead of Samsung in the electronics industry, Panasonic, formerly Matsushita, announced a plan to invest $2.8 billion to build a plant that will produce 15 million 32-inch LCD TV panels.
More recently, Samsung is struggling in the flash memory sector. Toshiba, the world’s second largest flash maker, has recently unveiled a 15.3 trillion won investment plan in a joint venture with its U.S. partner San Disk to steal Samsung's share.
The move, widely seen as a tactic to overcome the industry leader, comes after the Japanese player abandoned on its high-definition HD-DVD formats, ending a war that recalls the right fight between VHS and Betamax in the 1980s.
To soothe overseas investors’ concern, Samsung Electronics CEO Yun Jong-yong paid a rare trip to India and Turkey early this month.
``We cannot finalize detailed business plans and even a reshuffle in key managerial posts has been postponed,’’ Yun said.